Tesla's market value soared above the $1 trillion mark on Friday, driven by expectations that President-elect Donald Trump will favor Tesla's companies.
The electric automaker's shares rose 8.2% to $321.22, bringing its valuation above the trillion-dollar mark for the first time in over two years.
The stock gained 29% this week, adding over $230 billion in market capitalization, its best since January 2023. Garrett Nelson, senior equity analyst at CFRA Research, believes Trump's victory will expedite regulatory approval for Tesla's autonomous driving technology.
Tesla CEO Elon Musk could advocate for favorable regulations for autonomous vehicles and delay enforcement actions related to Tesla's driver-assistance systems.
Musk has shifted his focus to self-driving technology, avoiding plans for an economy car priced under $30,000. However, development and regulatory hurdles have delayed commercialization.
If Musk can convince Trump to establish federal autonomous vehicle rules, it would benefit the auto industry by allowing firms to have one set of rules, rather than each state creating its own.
Tesla's CEO Elon Musk's wealth has surpassed $300 billion, according to Forbes' real-time billionaires list. Tesla's shares surged in late October after a rise in quarterly profit margin and forecasted 20-30% growth in deliveries next year.
Tesla has been the world's most valuable automaker for years, trailing Toyota and China. Tesla shares trade 93.47 times their 12-month forward earnings estimates.
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